by Ewan Turney
The annual premises licence fee to be paid by hosts under the new licensing system published belatedly last week is substantially higher than the trade was promised.
Premises will pay local authorities a one-off transition fee of between £80 and £500 and an annual fee of between £40 and £225 the original promise for the annual fee was for between £50 and £150. A personal licence will cost £37 and a temporary event notice £21.
"The annual premises charges are considerably higher," said ALMR (Association of Licensed Multiple Retailers) head of communications Kate Nicholls.
"The original proposals were for levels of between £50 and £150. Clearly these charges are far less than the current charges being applied to most public entertainment licences, but they will significantly increase the costs for traditional pubs."
Some licensees feel they will end up paying a lot more under the new system. Bernard Brindley, licensee of the White Lion in Pailton, Warwickshire, said: "I feel we have had the wool pulled over our eyes, as they said it would not cost us any more.
"The problem is 2005 is a new rateable year so many pubs will move up a category. I fear the fees will go up even higher within two or three years, as the local authorities will not be able to absorb the costs of the new regime."
In contrast, Graham Yates, of the Brunswick Tavern, in Derby, felt he would benefit from the new system. "It is not as bad as I thought it would be. I will be better off as I currently have a public entertainment licence."
The Local Government Association has warned that council tax may increase or services such as meals-on-wheels will be cut if the fees prove not to be high enough.
Policy leader Trisha O'Flynn said: "We will now canvass our members' opinions as to how it will affect them but we were campaigning for levels three or four times this size."
An independent review of fees will be held after the new system has had time to bed in.
The Department for Culture, Media and Sport will now hold a seven-week consultation period due to close on 21 December.
For information visit: www.culture.gov.uk/alcohol_and_entertainment/licensing_act_2003.htm
Fees
£80-£500 One-off transfer of premises licence payment
£40-£225 Annual fee
£37 Personal licence
£21 Temporary event notice
The Association of Licensed Multiple Retailers (ALMR) estimates that 80% of pubs will fall into bands B and C of the rateable values charging system
Band Rateable value Transfer fee Annual fee
A £0-£4,300 £80 £40
B £4,301-£33,000 £150 £125
C £33,001-£87,000 £250 £175
D £87,001-£125,000 £350 £200
E £125,001+ £500 £225